Arbeitspapier

Children and Women's Participation Dynamics: Transitory and Long-Term Effects

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Children affect the after-birth labor force participation of women in two ways. Directly, the time spent in child-care reduces the labor market effort. The time spent out of the labor market while on maternity leave alters women's participation experience and, thus, indirectly affects subsequent participation behavior. This paper proposes a model that disentangles the direct and indirect effect of children on women's labor force participation, and evaluates their relative importance. Participation decisions on a three-state space - employed full-time, employed part-time, not employed - are represented by a multivariate probit model with a general correlation structure. The model allows for a high degree of flexibility in modeling the dependence of sequential decisions. The estimation is performed using Markov chain Monte Carlo methods. It is shown that the indirect effect, through time out of the labor market, is more important. The discrepancy is sharper for full-time employment and grows with the length of the interruption.

Language
Englisch

Bibliographic citation
Series: IZA Discussion Papers ; No. 729

Classification
Wirtschaft
Statistical Simulation Methods: General
Fertility; Family Planning; Child Care; Children; Youth
Bayesian Analysis: General
Time Allocation and Labor Supply
Subject
female labor supply
multivariate probit model
Gibbs sampler
Frauenerwerbstätigkeit
Arbeitsangebot
Kinderbetreuung
Kinder
Schätzung
Deutschland

Event
Geistige Schöpfung
(who)
Voicu, Alexandru
Buddelmeyer, Hielke
Event
Veröffentlichung
(who)
Institute for the Study of Labor (IZA)
(where)
Bonn
(when)
2003

Handle
Last update
10.03.2025, 11:44 AM CET

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Object type

  • Arbeitspapier

Associated

  • Voicu, Alexandru
  • Buddelmeyer, Hielke
  • Institute for the Study of Labor (IZA)

Time of origin

  • 2003

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